Markets
4 advantages of investing in high-tech automobiles
As the connected car market grows, so too does the potential for investment. Do your research and play your cards right, and you stand to make a nice profit off of an initial investment — either monetary or otherwise.
In today’s hyper-connected world, high-tech vehicles are a quickly growing market. Depending on the make and model, they offer everything from assisted parking to navigation systems. This growth potential has spurred companies to offer numerous investment opportunities. But what’s in it for you?
Here are four benefits you’ll see from investing in these companies:
1. Support a greener future
Electric cars are the future, and the future is now. Global warming is a very real threat, one that many car companies are rising to combat. Hybrid cars give off much fewer emissions than standard cars, while electric models give off none at all. By investing in an auto company committed to greener vehicles, you’re helping our nation transition from gas-guzzlers to more sustainable models.
For a green company to invest in, look no further than Tesla, the poster child for electronic vehicles. Not only do they produce less emissions than a gas vehicle — even when taking into account the CO2 produced to make the electricity — their batteries are recyclable.
Tesla recycles 100 percent of their batteries in Europe and has a 60 percent recycle rate in the US. As electric cars take hold, this means less overall waste.
2. Smart safety features
Depending on your occupation, your morning commute may be the most dangerous part of your day. Driving a car is a lot more dangerous than we give it credit for, something automakers have long recognized. Thanks to advances in machine learning, computing technology and the internet of things, manufacturers are now loading their smart cars with numerous safety features.
If you’re interested in investing in cars built for safety, General Motors may just be the company for you. It’s committed to building in safety features for drivers of all experience levels, not just adults.
Take the 2016 Chevy Malibu. This car shipped with a Teen Driver system — perfect for keeping inexperienced drivers safe and giving parents some peace of mind. The car ships with plenty of features, including traction control, blind spot monitoring and parking assist. It even allows parents to set a max speed, and the system will ping the driver if it’s exceeded.
When it comes to producing safe cars, it’s clear that GM has the market covered.
3. Smart cars, smart partnerships
Sometimes, the best products and programs come out of partnerships between companies who have overlapping premises. Take, for example, Toyota and Uber. Toyota makes cars, while Uber’s business depends on them.
Investing in Toyota will support their plan to make a host of new services available to Uber, including specially designed smart cars and apps to support ride-sharing. This partnership represents a change in how we as a nation travel — reflecting on our desire to save by either having alternative transportation available at a moment’s notice or not owning a car outright.
As more people use Uber’s services, more avenues will open up for the partnership with Toyota.
4. Return on investment
When it comes to getting a monetary return on your investment, it pays to buy stock wisely. After all, one or two bad decisions on the company’s side, and the stock value could tank. Make sure the company has a solid strategy before you buy in.
One automaker you might want to look at is Audi. The renowned automaker decided in 2015 to enter the world of autonomous vehicles. As we know well, these cars are not without their perils, as no one manufacturer has perfected the technology yet.
To that end, Audi has partnered with Delphi, an auto-parts supplier formally part of General Motors. In the world of autonomous vehicles, Delphi is poised for major growth. The company specializes in integrating autonomous tech into car parts, simplifying the design process for manufacturers like Audi.
Delphi is at a good position in the market right now. It’s proven products have netted it $17 billion in sales and $1.35 billion in net income. But what does that mean for Audi investors? It means that Audi’s venture into autonomous cars is backed by sound, safe technology. That means everything when it comes to keeping the public interest.
Backed by secure technology, Audi’s project stands to offer a strong return on investment for shareholders in the future.
As the connected car market grows, so too does the potential for investment. Do your research and play your cards right, and you stand to make a nice profit off of an initial investment — either monetary or otherwise.
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DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
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